Market
Abuse Regulation ("MAR")
Disclosure
This
announcement contains inside information for the purposes of
Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms
part of UK domestic law by virtue of the European
Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance
with the Company's obligations under Article 17 of MAR.
19 November 2024
Bushveld Minerals
Limited
("Bushveld Minerals"
or the "Company")
Appointment of Business
Rescue Practitioners
Further to the announcement of 18
November, the Board of Bushveld Minerals announces that it has
placed its principal operating subsidiary, Bushveld Vametco
Holdings (Pty) Limited ("BVH"), along with Bushveld Vametco Alloys
(Pty) Limited ("BVA") and Bushveld Minerals SA (Pty) Limited
("BMSA") (collectively the "South African entities"), into Business
Rescue.
BVH is the Company's mining right
holder, whereas BVA is the company appointed to conduct mining and
incidental services on behalf of BVH. BMSA is the company used for
the South African head office located in Johannesburg.
A business rescue proceeding affords
the South African entities protection from legal action while their
future is assessed and potential plans to rescue the business are
implemented. The Company has nominated Piers Marsden and Jenna
Osborne of Matuson & Associates to be its joint business
rescue practitioners, which is in the process of being filed with
the Companies and Intellectual Property Commission.
Matuson & Associates has significant
experience in business rescue, turnarounds and corporate
restructures in the South African mining sector.
The process focuses on operations continuing
while the practitioner assists with turn around and finding
funding solutions.
The Company is engaging with its
advisors, including Guernsey insolvency practitioners, in respect
of potential courses of action for Bushveld Minerals.
Further announcements will be made
in due course as appropriate.
Craig Coltman, CEO of Bushveld Minerals
commented:
"This was not an easy decision to take or one that was
done lightly, however, in the current circumstances, it is the only
course of action that the Board could take in the interest of all
stakeholders.
The principal conditions that have led the Board to this
decision are the depressed vanadium market that has resulted
in us operating at a loss for an extended period of time; the lack
of cash availability that restricted the amount of maintenance and
repairs that could be done at Vametco, resulting in heightened
levels of plant breakdowns and production loss; historically high,
long outstanding creditor balances; and failure to procure suitable
funding from existing stakeholders or third parties despite efforts
to do so.
Matuson & Associates have significant experience in
turnaround situations and share our belief that there is reasonable
cause for business recovery."
Enquiries : info@Bushveldminerals.com
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Bushveld Minerals Limited
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+27 (0) 11 268 6555
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Craig Coltman, Chief Executive Officer
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SP
Angel Corporate Finance LLP
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Nominated Adviser & Joint Broker
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+44 (0) 20 3470 0470
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Richard Morrison / Charlie
Bouverat
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Grant Barker / Abigail
Wayne
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Hannam & Partners
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Joint Broker
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+44 (0) 20 7907 8500
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Andrew Chubb / Matt
Hasson / Jay Ashfield
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Tavistock
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Financial PR
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+44 (0) 207 920 3150
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Gareth Tredway / Tara
Vivian-Neal / James Whitaker
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ENDS
ABOUT BUSHVELD MINERALS LIMITED
Bushveld Minerals is a primary
vanadium producer. It is one of the world's three primary vanadium
producers, offering compelling exposure to vanadium through its
upstream asset.
Detailed information on the Company
and progress to date can be accessed on the
website www.bushveldminerals.com
